The market of organic products in France

Current trends

In 2016, the purchasing value of agri-food products from organic farming was estimated to be 7.147 billion euros:

– 6,736 billion € correspond to household consumption (+21.7% in 2015).

– 411 million € of purchases of organic products served in the out-of-home catering. While 229 million € of these are in collective catering (+5% in 2015), 182 million € are in commercial catering (+ 10% in 2015).

Other considerations:

– First of all, 71% of the organic products that are consumed in France come from France

– Furthermore, regarding imported products, 15% come from countries from the European Union and the remaining part from the rest of the world.

– Lastly, 43% of imports are exotic products (banana, cacao, coffee,…) or Mediterranean products (olives, citrus fruits,…), which France does not produce or only has low production.

Details of sales regarding distribution channels:

The used distribution channels

The used distribution channels

Since 2011, organic sales growth in supermarkets has been relatively weaker than in other distribution channels. In 2016, the importance of developing sales of fruit and vegetables and grocery products in this circuit helped to maintain market share at almost 45%.  In comparison, specialized organic distribution is at 37%, direct sales from producer to consumer at 13% and from artisans or traders at 5%.

The distribution of specialized organic products continues to be the most dynamic circuit with a growth rate of almost 24%. This is not only thanks to the opening of new stores, but also due to the increase in the average basket. Direct sales experienced slightly slower growth (+15%). Reasons for this are unfavourable weather conditions for production in 2016 and strong demand for long marketing channels.

Other related links:

The packaging industry in France

The ICT market in France

Business opportunities in the home décor sector

The export of the promotional object in France

The exportation of the decoration sector to France

The organic wines market in France

The French gardening market

The organic wine market in France

Peculiarities of the organic wine market

In the distribution of organic wine, it is important to distinguish between:

-the sector specialised in the distribution of organic products (wholesales of organic products, eco-friendly stores and organic grocery store chains on the one side

-and the not-speacialised sector (traders of wine, HORECA, great distribution) on the other side.

Other characteristics of the French organic wines market are:

– 74% of the volume of organic wines marketed are DO (Denomination of Origin)
– More than half of the organic wines consumed are red wines
– 12% of the organic wines consumed are sparkling wines
– Imports of organic wines are very weak (1%)
– Organic wines represent 12% of the organic consumption of households

France, the third biggest producer worldwide after Spain and Italy

France ranks third among the strongest producers worldwide, following Spain and Italy. These three countries represent 73% of the world’s vineyards.

Massive increase in the conversion of vineyards in Europe

Massive increase in the conversion of vineyards in Europe

In 2016, organic vineyards represent 9.1% of the French vineyards, that is to say that 68,556 hectares are covered by organic vineyards.  This shows an important evolution in recent years. In fact, areas converted to organic have increased eightfold since 2007 and we can now count more than 5,200 organic vineyards. In export, organic wine represents 2/3 of sales.

Major increase in vineyard conversion in France

Major increase in vineyard conversion in France

Origin of supplies according to the types of organic products

Origin of supplies according to the types of organic products

France produces 99% of the wine it sells.

Consumer habits in France

The consumption criteria are as follows:

– Origin of the wine
– respect for the environment
– AOP reputation
– price
– availability in the shop
– proximity of the product

French consumers have the habit of buying their wines directly from the producer (41% of total consumption in France).

Consumption according to the type of organic products

Consumption according to the type of organic products

The consumption of alcohol from organic farming has remained stable over the last 4 years and represents 12% of sales of organic products in France.

Profile of organic wine consumers

Profile of the type of consumer in France

Profile of the type of consumer in France

– In France, 1 out of 3 wine consumers consume this kind of wines
– 1 out of 6 environmental-conscious consumers drink them
– 12% of  consumers do not consume conventional wines
– 1% of French people only consume organic wine.
– Young people (between 18 and 24 years old) are especially interested in them. They represent 14% of consumers, compared to 8% who drink conventional wines. Young consumers are especially sensible to environmental reasons.
– According to the 2015 edition of the BIO Agengy’s barometer, 11% of consumers of organic wines intend to increase their consumption of this type of product over the next 6 months.
– 51% of French people would like to find a broader range of organic wines in supermarkets.

Conclusions about the market in France

French wines have a good image, but compete with Spanish or Italian in many countries.

In order to sell abroad, one has to put even more emphasis on their quality , its particularities and increase its participation at organic fairs (many in Europe), participation at competitions, organisation of tastings (wine shops, shops), in order to make them familiar among prestigious sommeliers.

There is a good perspective for implementing organic wines more and more in restaurants.

Other related links:

The packaging industry in France

The ICT market in France

Business opportunities in the home décor sector

The export of the promotional object in France

The exportation of the decoration sector to France

The organic wines market in France

The French gardening market

The market of organic products in France